The initial public offering market in Canada, which has been dormant for many years, is stirring again, with bankers and exchange officials suggesting 2026 may be a defining year after about four years of flagging activity.
The surge in IPOs would indicate a renewed confidence in the Canadian economy and reverse an extended trend of companies departing the exchange in the country.
Over the past few years, Canadian firms have largely shunned public markets as strong interest rates and enduring inflation pressured valuations.
Multiple firms pressed pause on their listing plans or opted for private equity-backed funding instead.
That caution came during a wider global slowdown in IPOs as market volatility, uncertainty over US tariffs, and elevated IPO costs took their toll.
But now in their view, the mood is changing. Following improved equity markets and investor sentiment, companies in technology, natural resources, consumer products, fintechs and other sectors are looking to public listing once again.
Compared to its peers, Canada was hit harder
Last year, IPO volumes decreased globally, but Canada’s market was more severely impacted.
Global difficulties were exacerbated by regulatory obstacles, and a small number of companies were prepared to list.
As a result, the number of publicly traded companies on the Toronto Stock Exchange (TSX) decreased as other markets began to stabilise.
Many people view new initial public offerings (IPOs) as a gauge of the state of the economy since they show investor interest and business confidence.
In Canada’s case, they also act as a litmus test for Prime Minister Mark Carney’s pro-business program, which includes promises to increase productivity and broaden international trade and commercial alliances.
Increased foreign investment may be crucial.
“You’re going to have a more attractive IPO market when you have more foreign investment coming into the country. Our doors are open to everyone in the world,” stated Michael Dehal, senior portfolio manager at Raymond James’ Dehal Investment Partners.
He added that businesses would receive more financing and financial support if they had greater international support.
Indications of momentum
There are already indications that the market might be changing. Rockpoint Gas Storage, the biggest IPO of the previous year, raised C$704 million in October, reviving hopes for an increase in listings.
Both bankers and investors have been keeping a tight eye on the deal’s performance.
According to David Rawlings, CEO of JP Morgan in Canada, which underwrote the Rockpoint deal, “successful IPOs can set positive precedents for future offerings.”
He called the stock’s performance positive as investors evaluate impending deals, pointing out that it is currently trading roughly 25% over its IPO price.
Even with these advancements, the bigger picture is still difficult. In the last three years, the number of listed firms on the TSX has decreased.
Due mostly to take-private deals, mergers and acquisitions, and consolidation in the financial and energy industries, there were only two initial public offerings (IPOs) and fifty-five delistings in 2025. In 2023 and 2024, delistings also exceeded listings.
Strong equities, thin supply
Ironically, a robust equities market has coincided with a decline in IPO activity. In 2025, the S&P/TSX Composite Index increased by around 29%, surpassing the 16% rise of the S&P 500.
Gains in mining companies and growing valuations of large banks, which account for around one-third of the index, were the main drivers of the surge.
Even if corporations haven’t wanted to enter the market, the long equity indicates that investors are looking for areas to put money.
Peter Miller, head of equity capital markets at Bank of Montreal, claims that the latter has been the issue. Miller claimed that supply rather than demand for new listings was the cause of Canada’s IPO decline.
However, she claimed that over the last few months, the trend has changed dramatically. Right now, the IPO pipeline is at its strongest point since 2021.
Optimism tempered by risks
That optimism is shared by other bankers.
Jackie Nixon, head of Canadian equity markets at Royal Bank of Canada, stated that her team is collaborating with a number of private businesses that are anticipated to go public in 2026.
With many potential issuers looking to raise large sums of money, TMX Group, which runs the TSX, is likewise expecting a notable increase in listings.
Even once companies are listed, there are still hazards. For instance, since its initial public offering (IPO) in July 2025, GO Residential Real Estate Investment Trust has lost almost 25% of its value.
According to Michael Ashley Schulman, partner at Running Point Capital Advisors, “what really matters is if operating company IPOs can actually trade well post-issue.”
The difficulty facing Canada as it looks to 2026 will be converting newfound interest into long-term success, making sure that new listings not only show up but also perform well enough to maintain confidence in the public markets.
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